APC Academy - Contract Administration

Question 1

What is an Extension of Time?

Answer 1

Claim made by the contractor due to a relevant event which has caused a delay resulting in the contractor being unable to complete works as per the contractural date.

Question 2

What are relevant events?

Answer 2

Under JCT the following are relevant events:

• instructions/variations
• deferment of possession of the site
• suspension
• works by others (which would include works by
statutory undertakers)
• unusually adverse weather; and
• events causing delay that neither party could
prevent or foresee (which would include civil
commotion, terrorism and strikes, if these are
‘Employer’s risks’ under clause 80.1)

Question 3

How did the contractor submit their claim?

Answer 3

Contractor must submit written delay notice in accordance with clause 2.7. Delay notice must set out the circumstances and the relevant event that caused the delay. Contractor must state the effects of delay upon completion date.

Question 4

What was your role in assessing the claim?

Answer 4

I assessed the claim in accordance with JCT suite of contracts which allows the CA to determine the claim within 12 weeks. (although M/W doesn’t set that out). T
I advised client and contractor that the claim was fair and reasonable and that on completion of works the claim would be assessed.

Question 5

What is loss and expense?

Answer 5

Loss suffered as a result of variations.

Question 6

What is a concurrent delay?

Answer 6

delay involving two or more events.

Question 7

What is a variation?

Answer 7

As per clause 3.6 a variation is defined as “an omission, change or other change to the works or manner in which they are to be carried out”.

Question 8

How are variations valued?

Answer 8

using any relevant priced specifications, schedule or contractors schedule of rates.

Question 9

How did you agree on valuations?

Answer 9

priced obtained from contractor was discussed and agreed with client prior to agreeing with contractor and CVI issued.

Question 10

When are interim payments due?

Answer 10

Typically one month after commencement and at monthly intervals.

Question 11

What is included within a valuation?

Answer 11

The value of works completed to date and the value of materials and goods onsite.
*no provision for value of materials offsite.

Question 12

How was the delay at your Netherbank Project measured?

Answer 12

By comparing actual progress achieved onsite with planned progess shown on the programme of works.

Question 13

What is a latent defect?

Answer 13

A defect that cant be determined through reasonable inspection and may not become apparent for weeks or months after completion.

Question 14

What is a patent defect?

Answer 14

A defect found my reasonable inspection. Contractor has to rectify during the defects rectification period.

Question 15

Under JCT M/W16 what is the length of time for defects period?

Answer 15

3 months.

6 months in SBC

Question 16

Under JCT M/W when is final account to be determined.

Answer 16

within 3 months of practical completion date. Within 28 days of receipt of all info from contractor.

Question 17

What certificates are up to final certificate stage?

Answer 17

• interim payment certificates at monthly intervals (cl 4.3);
• practical completion certificate (cl 2.9, or 2.10 in MWD16);
• interim payment certificates following practical completion, including release of half of the retention (cl 4.3);
• certificate of making good (cl 2.11, or 2.12 in MWD16).

Question 18

What is the length of time in which the CA advises the contractor of defects?

Answer 18

Within 14 days of the end of the rectification period.

Question 19

How does SBCC M/W16 deal with final certificate?

Answer 19

Contractor must issue certificate 3 months from date of Practical Completion certified by the CA. Due date for payment will be 28 days after receipt date of info. Payment must be made to the contractor within 5 days of due date.

Question 20

How does SBCC deal with non completion?

Answer 20

Provided relevant notices have been issued the CA may deduct monies owed from the next payment certificate or recover what is owed as debt. CA is not required under M/W to issue a certificate of non completion but best practice to put in writing.

Question 21

What is the process for dealing with defects under SBCC M/W?

Answer 21

If defects found the CA must notify the contractor within 14 days of the date of expiry of the defects period. The contractor must attend and repair at no cost to the client. Once repairs are done and defects period the CA can issue a certificate of making good.

Question 22

What is a Prime Cost?

Answer 22

Prime cost is a cost allowance made for works by a nominated subcontractor. The main contractor will likely apply a & uplift for attendance fees.

Question 23

What is a Provisional Sum?

Answer 23

Provisional sum is an allowance for an element of work that has been defined in sufficient detail to allow the contractor to make an allowance for it within their cost.

Question 24

What is an undefined provisional sum?

Answer 24

An undefined provisional sum is one that is not well defined and one which the contractor can not be expected to have made an allowance for within their costs.